Westfield Corp Ltd (ASX: WFD) shares remain well below their 52-week high price but look to have made a subtle recovery over the last couple of weeks. With strong tailwinds behind its back, here are three reasons why now could be an excellent time for prospective investors to make their move.
- Westfield Corp is heavily exposed to the recovering economies of the U.S. and U.K., which should allow it to enjoy strong earnings growth in the coming years. While 29% of its assets are located in the U.K., a massive 71% are located in the U.S., including the soon-to-be-unveiled World Trade Centre mall which some analysts believe could become its greatest asset.
- Given its international presence, Westfield Corp's recent share price decline can largely be attributed to the stronger Australian dollar, which briefly rose above the US81 cent mark. Westfield Corp reports its earnings in US dollars so a stronger Australian dollar is not ideal for local investors. However, the dollar is now falling (quickly) and is trading below the US77 cent mark, with economists expecting even more falls to come. This should bode well for the company, and its share price.
- Another reason to like Westfield Corp is its generous dividend yield. As is the case with its earnings, Westfield announces its dividend in U.S. dollars and expects to distribute US 25.1 cents per share this year. At today's exchange rate, that equates to 33 cents per share, or a yield of 3.5%.
Despite its size (it has a market capitalisation of nearly $20 billion), Westfield Corp has the potential to grow considerably over the coming years, potentially generating fantastic investor returns along the way. Investors wanting to gain exposure to the US economy and falling Australian dollar should certainly consider adding this industry behemoth to their long-term portfolio today.
